The Nigeria Customs Service (NCS) has set an ambitious revenue target of N5.08 trillion for the fiscal year 2024. The Comptroller General of Customs, Mr. Bashir Adeniyi, revealed this during a presentation to the House of Representatives Committee on Customs and Excise while defending the 2024 budget of the service.
The targeted revenue, which is 27.75 percent higher than the 2023 target, is broken down into N3.423 trillion for the federation accounts, N554.35 billion for non-federation accounts, and N1.101 trillion for Import Value Added Tax (VAT). The NCS is optimistic about achieving this target, considering various strategic initiatives.
Mr. Adeniyi outlined key drivers for achieving the revenue target, including the rollout of fiscal policy measures on time, the pursuit of the national single window project for process harmonization, and the introduction of the Vehicle Registration System and Vehicle Identification Number valuation application to curb undervaluation and tax evasion.
Reflecting on the 2023 performance, the NCS had a revenue target of N3.67 trillion but generated N3.21 trillion. The Comptroller General attributed the variance to factors such as election anxiety, cash crunch, Naira redesign, and fluctuating exchange rates.
He highlighted challenges faced in 2023, including significant imports under the common external tariff and import duty exemption certificates, resulting in revenue loss. Adeniyi called for legislative support and expressed regret over not meeting the revenue target, emphasising the need for innovative solutions and technological advancement within the Customs Service.
The Chairman of the Committee, Leke Abejide, underscored the importance of e-customs and urged the NCS to think innovatively to align with a more technologically advanced Nigeria Customs Service. He emphasised the need for a budget framework aligned with the objectives of a reformed customs service.